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Improved supply conditions and lower total demand in 2006 contributed to the lowest annual average weighted price since the market opened in 2002. The average price for 2006 was 4.87 cents per kilowatt hour, down 30 per cent from the previous year.

"The availability of new generating capacity, good performance from existing generators and moderate weather all helped create a positive electricity supply picture for Ontario in 2006," said IESO President and CEO Paul Murphy.

Nuclear facilities increased their output by three per cent and continued to provide the majority of supply for Ontario at 84.4 terawatt hours (TWh), or 54 per cent.  The portion of Ontario's electricity production from hydroelectric generators remained steady at 22 per cent, or 34.8 TWh.

Generation from coal-fired facilities was down three per cent from the previous year accounting for 16 per cent of all Ontario generation or 25 TWh.  Other fuels, including oil, gas and alternative sources, supplied the remaining eight per cent, or 11.8 TWh, of the province's electricity output.  Output from Ontario's wind facilities continued to make an increasing contribution to total supply as over 300 megawatts (MW) of new wind capacity was installed in 2006. 

Ontario set a new all-time record for electricity demand of 27,005 MW on August 1, 2006.  However, despite this record peak, total annual demand for electricity declined to 151 TWh, compared to 157 TWh in 2005. 

Reduced imports and increased export opportunities for Ontario generators reflected the overall improved supply conditions in the province.  Ontario was a net exporter selling 11.4 TWh in 2006, almost double the 6.2 TWh imported.  Ontario demand plus the Operating Reserve requirement exceeded available domestic capacity in 246 hours during 2006, down almost 60 per cent from 2005.